Interim report January 1 - March 31, 2010

Interim report January 1 - March 31, 2010

A stable quarter
- The operating margin was 23%, adjusted for costs related to the acquisition of
Neonet. 

Following the initial acceptance of Orc's offer by 97% of Neonet's shareholders,
the process to integrate the two companies is now in full swing. 

Operating income for the first quarter of 2010 was charged with SEK 11.7m in
costs related to the acquisition and was also affected by foreign exchange
losses totaling SEK 3.2m, compared to exchange gains of SEK 5.1m in the first
quarter of 2009. Adjusted for acquisition costs and Foreign exchange
differences, operating income would be SEK 42.1m for Q1 2010, as against SEK
42.5m for Q1 2009, and the operating margin would be 25%, as against 26%. 

Neonet will be included in Orc Software's interim reporting as of Q2 2010.

The annualized contract value (ACV) at the end of Q1 2010 was SEK 653.3m
(690.3), a decrease of SEK 37.0m, or 5%, compared to Q1 2009. On a fixed
exchange rate basis, the ACV increased by SEK 49.0m, or 7%.

January - March 2010
• Operating revenue of SEK 170.4m (163.8)
• Revenue growth of 4% 
• Operating income of SEK 27.2m (47.7)
• Operating margin of SEK 16% (29)
• Income after tax of SEK 18.9m (34.0)
• Basic earnings per share of SEK 1.22 (2.23)


CEO Thomas Bill comments:
I am satisfied to report that 97% of the shareholders in Neonet accepted our
offer to merge the two companies. The process to integrate and develop our
operations is in full swing and proceeding as planned. Our conviction that it
would be right to merge the companies has become stronger as we have gotten to
know Neonet even better. Together, we have good possibilities to create a
leading global company in financial technology and services. Customers have also
received the merger positively and we already have a number of combined business
deals in progress as a result. On the whole, this makes us feel confident that
we will be able to achieve the synergistic effects we described when we
presented the acquisition.

Orc's first quarter showed stable growth. New sales were on the same level as in
the first quarter of last year. Contract reductions and cancellations (churn)
were considerably lower than the average during 2009. We have started to
increase the number of staff in the development organization, as we announced at
year-end 2009, which will enable us to deliver more competitive solutions to the
global financial market. Costs are developing according to plan.

We are paying attention to a number of factors that might slow our growth in the
near term, such as the weakening of the euro and US dollar, and the risk that
the positive churn trend will be broken.

I look with confidence to the rest of 2010, when we will create an even stronger
Orc together with our colleagues from Neonet. This, in turn, will provide us
with a new platform for profitable growth.

Contact Information 
CEO Thomas Bill, phone: +46 8 506 477 35
CFO Anders Berg, phone: +46 8 506 477 24

N.B. The English text is a translation of the Swedish text. In case of
discrepancy between the Swedish and the English text the Swedish version shall
prevail.

About Orc Software
Orc Software (SSE: ORC) is the leading global provider of powerful solutions for
the worldwide financial industry in the critical areas of advanced trading and
low latency connectivity. Orc's competitive edge lies in its depth of knowledge
of the trading world gained by deploying advanced solutions for sophisticated
traders for over 20 years. 

Orc Trading and Orc Connect provide the tools for making the best trading and
connectivity decisions with strong analytics, unmatched market access, powerful
automated trading functionality, high performance futures and options trading
capabilities, ultra-low latency, and risk management. 

Orc's customers include leading banks, trading and market-making firms,
exchanges, brokerage houses, institutional investors and hedge funds. 

Orc provides sales, quality support services and development from its offices
across EMEA, Americas and Asia Pacific.

For more information, please visit: www.orcsoftware.com